34062 (2026). Francisco Hernandez to the Minister of Finance

34062 (2026). Francisco Hernandez to the Minister of Finance: What procurement process, if any, was used for purchasing artificial intelligence tools, if any, currently being used within the Minister’s departments, agencies, crown entities and any other bodies that the Minister is responsible for, if any?

Hon Nicola Willis: I am advised Treasury uses Microsoft supplied AI tools Copilot and Azure OpenAI and they were procured under the Microsoft Cloud and Software Services Agreement (MCSSA), an All of Government agreement, with Datacom Systems Limited acting as the Licensing Solution Partner I am also advised the RBNZ has followed NZ government procurement processes with all procurement of artificial intelligence. All procurement has been conducted through secondary procurement and competitive tender through Marketplace. The Guardians of New Zealand Superannuation advise me they use two artificial intelligence tools: Microsoft 365 Copilot and GitHub Copilot (Visual Studio). Each of these tools were procured under the Microsoft Cloud and Software Services Agreement (MCSSA), an All of Government agreement, with Datacom Systems Limited acting as the Licensing Solution Partner. Procurements under All of Government contracts are Secondary Procurements for the purpose of the Government Procurement Rules. The decision to procure these tools was informed by early discussions with peer funds and fund managers on their AI tooling usage, as well as our existing technology architecture. Guardians has a well-established Microsoft technology ecosystem, with Microsoft 365 forming the foundation of our productivity, collaboration, and security. As a result, the Microsoft-native AI capabilities of these tools aligned closely with existing platforms, governance processes and user workflows, reducing the cost and complexity of implementation, usage, and ongoing management. I am additionally advised that artificial intelligence tools currently in use by the Natural Hazards Commission were procured in accordance with government procurement rules. Microsoft Copilot was acquired through the All-of-Government Microsoft Agreement, via Datacom, under an approved exemption from open advertising (only one supplier due to a need to match with existing equipment, software and services), while Galileo AI was directly sourced, via Josh Bersin Company, as a low-value pilot.